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Investment Securities | 9 Months Ended
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Sep. 30, 2020
Investment Securities [Abstract] |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | Investment Securities Securities Available for Sale Below is an analysis of the amortized cost and estimated fair values of securities available for sale at:
| September 30, 2020 |  | December 31, 2019
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value
| (dollars in thousands)
Obligations of U.S. Government Agencies: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-Backed Securities – Residential | $ | 6,778 |  |  | $ | 763 |  |  | $ | — |  |  | $ | 7,541 |  |  | $ | 7,745 |  |  | $ | 596 |  |  | $ | — |  |  | $ | 8,341 |
Mortgage-Backed Securities – Commercial | 209,175 |  |  | 9,377 |  |  | — |  |  | 218,552 |  |  | 186,316 |  |  | 2,983 |  |  | (166) |  |  | 189,133 |
Obligations of U.S. Government-Sponsored Enterprises: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-Backed Securities – Residential | 527,570 |  |  | 15,977 |  |  | (4) |  |  | 543,543 |  |  | 660,777 |  |  | 4,113 |  |  | (2,943) |  |  | 661,947 |
Other Government-Sponsored Enterprises | 100,993 |  |  | 2 |  |  | (2) |  |  | 100,993 |  |  | 1,000 |  |  | — |  |  | — |  |  | 1,000 |
Obligations of States and Political Subdivisions | 12,965 |  |  | 208 |  |  | (6) |  |  | 13,167 |  |  | 17,738 |  |  | 171 |  |  | — |  |  | 17,909 |
Corporate Securities | 22,935 |  |  | 1,505 |  |  | — |  |  | 24,440 |  |  | 22,919 |  |  | 1,043 |  |  | — |  |  | 23,962 |
Total Securities Available for Sale | $ | 880,416 |  |  | $ | 27,832 |  |  | $ | (12) |  |  | $ | 908,236 |  |  | $ | 896,495 |  |  | $ | 8,906 |  |  | $ | (3,109) |  |  | $ | 902,292 |
Mortgage-backed securities include mortgage-backed obligations of U.S. Government agencies and obligations of U.S. Government-sponsored enterprises. These obligations have contractual maturities ranging from less than one year to approximately 30 years with lower anticipated lives to maturity due to prepayments. All mortgage-backed securities contain a certain amount of risk related to the uncertainty of prepayments of the underlying mortgages. Interest rate changes have a direct impact upon prepayment speeds; therefore, First Commonwealth uses computer simulation models to test the average life and yield volatility of all mortgage-backed securities under various interest rate scenarios to monitor the potential impact on earnings and interest rate risk positions. Expected maturities will differ from contractual maturities because issuers may have the right to call or repay obligations with or without call or prepayment penalties. Other fixed income securities within the portfolio also contain prepayment risk. The amortized cost and estimated fair value of debt securities available for sale at September 30, 2020, by contractual maturity, are shown below.
| Amortized Cost |  | Estimated Fair Value
| (dollars in thousands)
Due within 1 year | $ | 104,991 |  |  | $ | 105,041 |
Due after 1 but within 5 years | 20,225 |  |  | 21,260 |
Due after 5 but within 10 years | 7,127 |  |  | 7,749 |
Due after 10 years | 4,550 |  |  | 4,550 |
| 136,893 |  |  | 138,600 |
Mortgage-Backed Securities (a) | 743,523 |  |  | 769,636 |
Total Debt Securities | $ | 880,416 |  |  | $ | 908,236 |
(a)Mortgage-backed and collateralized mortgage securities, which have prepayment provisions, are not assigned to maturity categories due to fluctuations in their prepayment speeds. Mortgage-Backed Securities include an amortized cost of $216.0 million and a fair value of $226.1 million for Obligations of U.S. Government agencies issued by Ginnie Mae and an amortized cost of $527.6 million and a fair value of $543.5 million for Obligations of U.S. Government-sponsored enterprises issued by Fannie Mae and Freddie Mac. Proceeds from sales, gross gains (losses) realized on sales, maturities and other-than-temporary impairment charges related to securities available for sale were as follows for the nine months ended September 30:
| 2020 |  | 2019
| (dollars in thousands)
Proceeds from sales | $ | — |  |  | $ | — |
Gross gains (losses) realized: |  |  |
Sales transactions: |  |  |
Gross gains | $ | — |  |  | $ | — |
Gross losses | — |  |  | — |
| — |  |  | — |
Maturities |  |  |
Gross gains | 47 |  |  | 15 |
Gross losses | — |  |  | — |
| 47 |  |  | 15 |
Net gains and impairment | $ | 47 |  |  | $ | 15 |
Securities available for sale with an estimated fair value of $865.1 million and $584.8 million were pledged as of September 30, 2020 and December 31, 2019, respectively, to secure public deposits and for other purposes required or permitted by law. Securities Held to Maturity Below is an analysis of the amortized cost and fair values of debt securities held to maturity at:
| September 30, 2020 |  | December 31, 2019
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value |  | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value
| (dollars in thousands)
Obligations of U.S. Government Agencies: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-Backed Securities – Residential | $ | 2,937 |  |  | $ | 151 |  |  | $ | — |  |  | $ | 3,088 |  |  | $ | 3,392 |  |  | $ | 57 |  |  | $ | — |  |  | $ | 3,449 |
Mortgage-Backed Securities- Commercial | 41,334 |  |  | 1,537 |  |  | — |  |  | 42,871 |  |  | 51,291 |  |  | 18 |  |  | (184) |  |  | 51,125 |
Obligations of U.S. Government-Sponsored Enterprises: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-Backed Securities – Residential | 171,100 |  |  | 5,646 |  |  | (19) |  |  | 176,727 |  |  | 229,667 |  |  | 1,377 |  |  | (294) |  |  | 230,750 |
Mortgage-Backed Securities – Commercial | 10,334 |  |  | 375 |  |  | — |  |  | 10,709 |  |  | 12,081 |  |  | 67 |  |  | — |  |  | 12,148 |
Obligations of States and Political Subdivisions | 42,133 |  |  | 661 |  |  | (1) |  |  | 42,793 |  |  | 40,092 |  |  | 554 |  |  | — |  |  | 40,646 |
Debt Securities Issued by Foreign Governments | 800 |  |  | — |  |  | — |  |  | 800 |  |  | 600 |  |  | — |  |  | — |  |  | 600 |
Total Securities Held to Maturity | $ | 268,638 |  |  | $ | 8,370 |  |  | $ | (20) |  |  | $ | 276,988 |  |  | $ | 337,123 |  |  | $ | 2,073 |  |  | $ | (478) |  |  | $ | 338,718 |
The amortized cost and estimated fair value of debt securities held to maturity at September 30, 2020, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or repay obligations with or without call or prepayment penalties.
| Amortized Cost |  | Estimated Fair Value
| (dollars in thousands)
Due within 1 year | $ | 4,949 |  |  | $ | 4,974 |
Due after 1 but within 5 years | 11,195 |  |  | 11,310 |
Due after 5 but within 10 years | 19,760 |  |  | 20,232 |
Due after 10 years | 7,029 |  |  | 7,077 |
| 42,933 |  |  | 43,593 |
Mortgage-Backed Securities (a) | 225,705 |  |  | 233,395 |
Total Debt Securities | $ | 268,638 |  |  | $ | 276,988 |
(a)Mortgage-backed and collateralized mortgage securities, which have prepayment provisions, are not assigned to maturity categories due to fluctuations in their prepayment speeds. Mortgage-Backed Securities include an amortized cost of $44.3 million and a fair value of $46.0 million for Obligations of U.S. Government agencies issued by Ginnie Mae and an amortized cost of $181.4 million and a fair value of $187.4 million for Obligations of U.S. Government-sponsored enterprises issued by Fannie Mae and Freddie Mac. Securities held to maturity with an amortized cost of $257.6 million and $306.8 million were pledged as of September 30, 2020 and December 31, 2019, respectively, to secure public deposits and for other purposes required or permitted by law. Other Investments As a member of the Federal Home Loan Bank ("FHLB"), First Commonwealth is required to purchase and hold stock in the FHLB to satisfy membership and borrowing requirements. The level of stock required to be held is dependent on the amount of First Commonwealth's mortgage-related assets and outstanding borrowings with the FHLB. This stock is restricted in that it can only be sold to the FHLB or to another member institution, and all sales of FHLB stock must be at par. As a result of these restrictions, FHLB stock is unlike other investment securities insofar as there is no trading market for FHLB stock and the transfer price is determined by FHLB membership rules and not by market participants. As of September 30, 2020 and December 31, 2019, our FHLB stock totaled $11.3 million and $15.1 million, respectively, and is included in “Other investments” on the unaudited Consolidated Statements of Financial Condition. FHLB stock is held as a long-term investment and its value is determined based on the ultimate recoverability of the par value. First Commonwealth evaluates impairment quarterly and has concluded that the par value of its investment in FHLB stock will be recovered. Accordingly, no impairment charge was recorded on these securities during the three and nine months ended September 30, 2020. As of both September 30, 2020 and December 31, 2019, "Other investments" also includes $1.7 million in equity securities. These securities do not have a readily determinable fair value and are carried at cost. During the nine-months ended September 30, 2020 and 2019, there were no gains or losses recognized through earnings on equity securities. On a quarterly basis, management evaluates equity securities by reviewing the severity and duration of decline in estimated fair value, research reports, analysts’ recommendations, credit rating changes, news stories, annual reports, regulatory filings, impact of interest rate changes and other relevant information. Impairment of Investment Securities As required by FASB ASC Topic 320, “Investments – Debt and Equity Securities,” credit-related other-than-temporary impairment on debt securities is recognized in earnings, while non-credit related other-than-temporary impairment on debt securities not expected to be sold is recognized in OCI. During the nine months ended September 30, 2020 and 2019, no other-than-temporary impairment charges were recognized. First Commonwealth utilizes the specific identification method to determine the net gain or loss on debt securities and the average cost method to determine the net gain or loss on equity securities. We review our investment portfolio on a quarterly basis for indications of impairment. This review includes analyzing the length of time and the extent to which the fair value has been lower than the cost, the financial condition and near-term prospects of the issuer, including any specific events which may influence the operations of the issuer and whether we are more likely than not to sell, or be required to sell, the security. We evaluate whether we are more likely than not to sell debt securities based upon our investment strategy for the particular type of security, our cash flow needs, liquidity position, capital adequacy, tax position and interest rate risk position. In addition, the risk of future other-than-temporary impairment may be influenced by weakness in the U.S. economy or changes in real estate values. The following table presents the gross unrealized losses and estimated fair values at September 30, 2020 for both available for sale and held to maturity securities by investment category and time frame for which securities have been in a continuous unrealized loss position:
| Less Than 12 Months |  |  | 12 Months or More |  |  | Total
| Estimated Fair Value |  | Gross Unrealized Losses |  |  | Estimated Fair Value |  | Gross Unrealized Losses |  |  | Estimated Fair Value |  | Gross Unrealized Losses
| (dollars in thousands)
Obligations of U.S. Government-Sponsored Enterprises: |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-Backed Securities – Residential | $ | 10,777 |  |  | $ | (23) |  |  |  | $ | — |  |  | $ | — |  |  |  | $ | 10,777 |  |  | $ | (23) |
Other Government-Sponsored Enterprises | 998 |  |  | (2) |  |  |  | — |  |  | — |  |  |  | 998 |  |  | (2) |
Obligations of States and Political Subdivisions | 2,207 |  |  | (7) |  |  |  | — |  |  | — |  |  |  | 2,207 |  |  | (7) |
Total Securities | $ | 13,982 |  |  | $ | (32) |  |  |  | $ | — |  |  | $ | — |  |  |  | $ | 13,982 |  |  | $ | (32) |
At September 30, 2020, fixed income securities issued by U.S. Government-sponsored enterprises comprised 78% of total unrealized losses due to changes in market interest rates. At September 30, 2020, there are ten debt securities in an unrealized loss position. The following table presents the gross unrealized losses and estimated fair values at December 31, 2019 by investment category and time frame for which securities have been in a continuous unrealized loss position:
| Less Than 12 Months |  |  | 12 Months or More |  |  | Total
| Estimated Fair Value |  | Gross Unrealized Losses |  |  | Estimated Fair Value |  | Gross Unrealized Losses |  |  | Estimated Fair Value |  | Gross Unrealized Losses
| (dollars in thousands)
Obligations of U.S. Government Agencies: |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-Backed Securities - Commercial | $ | 54,501 |  |  | $ | (201) |  |  |  | $ | 16,365 |  |  | $ | (149) |  |  |  | $ | 70,866 |  |  | $ | (350) |
Obligations of U.S. Government-Sponsored Enterprises: |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-Backed Securities – Residential | 111,969 |  |  | (436) |  |  |  | 219,015 |  |  | (2,801) |  |  |  | 330,984 |  |  | (3,237) |
Total Securities | $ | 166,470 |  |  | $ | (637) |  |  |  | $ | 235,380 |  |  | $ | (2,950) |  |  |  | $ | 401,850 |  |  | $ | (3,587) |
As of September 30, 2020, our corporate securities had an amortized cost and an estimated fair value of $22.9 million and $24.4 million, respectively. As of December 31, 2019, our corporate securities had an amortized cost and estimated fair value of $22.9 million and $24.0 million, respectively. Corporate securities are comprised of debt issued by large regional banks. There were no corporate securities in an unrealized loss position as of both September 30, 2020 and December 31, 2019. When unrealized losses exist on these investments, management reviews each of the issuer’s asset quality, earnings trends and capital position to determine whether issues in an unrealized loss position were other-than-temporarily impaired. All interest payments on the corporate securities are being made as contractually required.

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- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2176304 + Details
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